Question
The company stock is currently trading at 31.00 and they have just paid a dividend of 2 per share. You expect the dividend to increase
The company stock is currently trading at 31.00 and they have just paid a dividend of 2 per share. You expect the dividend to increase by 12% for the next two years and after by 4% per year. Your required return is 15%.
Estimate the value of this companys stock by using a two-stage Dividend Discount Model and answer if this companys stock is correctly valued.
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The Structured Credit Handbook
Authors: Arvind Rajan, Glen McDermott, Ratul Roy
1st Edition
0471747491, 978-0471747499
